Connect with:
Sunday / February 23. 2025

logo
mobile-logo
HomePosts Tagged "National Commodities & Derivatives Exchange Limited (NCDEX)"
Agribusiness, AgroPolicy, India, Opinions

The agriculture commodity derivatives markets are keenly awaiting measures to enhance liquidity and transparency in the agriculture sector.

Finance Minister Nirmala Sitharaman all set to present the Union Budget on February 1, agri – economists and agriculture industry experts are hoping for a slew of reforms that would help boost agriculture, MSMEs and other sectors, while prioritising fiscal prudence.

 While sharing the expectations from upcoming Union Budget, Kedar Deshpande, Chief Business Officer, NCDEX mentioned, “As we look ahead to the upcoming Union Budget, the agriculture commodity derivatives markets are keenly awaiting measures to enhance liquidity and transparency in the agriculture sector. We hope the government adopts a consultative approach to introduce initiatives that streamline regulations, deepen market participation, and position India as a significant player in the global commodity landscape”

Deshpande also emphasised that, at NCDEX, we urge policymakers to prioritise market-driven solutions and modern risk management tools to boost efficiency, reduce fiscal strain, enhance transparency and ensure long-term sustainability of India’s agricultural economy. Addressing the core challenge faced by farmers / FPOs—being price takers in a system influenced by the unpredictability of APMC markets—by focusing on derivative instruments like put options complementing government schemes like ‘Fasal Bima’, MSP etc would be a transformative step. Another key expectation is the implementation of incentives for farmers / FPOs using Electronic Negotiable Warehouse Receipts (eNWRs). Equipping farmers to store their produce in WDRA-certified warehouses and secure funding against their stocks, eNWRs can enable them to hold their harvest for better prices, improving income stability. Enhancing warehouse-based markets, linked through eNWRs to the electronic platforms will empower farmers / FPOs with greater market access and better price discovery while supporting the agricultural economy’s transition towards a digital-first approach.”

The agriculture commodity derivatives markets are keenly

Collaborations, Finance, Trade

A Milestone in Regional Financial Co-operation towards Building a Cutting-Edge Trading Ecosystem

National Commodities & Derivatives Exchange Limited (NCDEX), India’s leading agri commodity derivatives exchange, and the Colombo Stock Exchange (CSE), Sri Lanka’s flagship stock exchange, have signed a Memorandum of Understanding (MoU) on 16th January 2025 at Colombo, to foster collaboration in assisting in establishing a comprehensive framework for derivatives and commodities to be traded in Sri Lanka. The collaboration aims to harness NCDEX’s more than two decades of expertise in developing and managing a robust derivative ecosystem and CSE’s expertise in the equity segment to establish market infrastructure that aligns with global standards.

The areas of cooperation include knowledge transfer, technology support, capacity building, and the development of a regulatory framework. The partnership highlights the value of regional collaboration in financial market development, ably supported by respective forward-looking governments. Expressing enthusiasm at the development, Mr. Arun Raste, Managing Director & CEO, NCDEX, said, “This MoU reflects NCDEX’s commitment to creating globally benchmarked platforms that support regional development. It presents an opportunity to contribute to establishing a sustainable and well-regulated financial market ecosystem.

Our expertise in derivatives and commodities trading, developed under the progressive policies and unwavering support of the Indian government and regulators, positions us well to share valuable insights internationally.” Speaking on the partnership, Mr. Dilshan Wirasekara, Chairman of the CSE, stated, “This initiative marks a pivotal milestone in Sri Lanka’s journey toward diversifying its capital market offerings. By partnering with NCDEX, we aim to introduce world-class trading facilities. Through this exchange will empower market participants, create economic opportunities, and contribute to sustainable development.”

The MoU is aimed at sharing expertise in product designing and development, trading systems, and regulatory frameworks; providing assistance in setting up advanced trading and operational systems; conducting training programs, technical assistance, and infrastructure development to empower stakeholders; develop a broad-level regulatory framework to ensure the smooth functioning. The signing ceremony was attended by representatives from CSE and NCDEX, reinforcing the commitment of both organizations to enhancing market infrastructure and advancing sustainable trading practices.

A Milestone in Regional Financial Co-operation towards